All Forum Posts by: Brandon Ingegneri

No, that is a great point.  It certainly does depend on where you are located.  Here in the North East, we have a super liberal court system that is tenant heavy in court rulings.  I tend to avoid the process at all costs, but if California is more landlord friendly, the traditional route may be more effective as you said Maggie.

I would go with an LLC for several reasons. Number 1 it provides you a certain degree of protection, "IF" the LLC is used properly. If personal money is transferred back and forth between the LLC and personal funds regularly, if personal money co-mingles with company money, or if business expenses are paid with personal money and vise versa, the LLC will not hold up as thoroughly in court. If used properly with its own account, it allow protection and flexibility.

A trust in essence locks up the property, making it difficult to utilize the property creatively when needed. I am from Rhode Island, so I know how expensive it is where you are located on the North Shore. Pay the $500 and use the LLC. Less headaches.

The problem that I am running into is that I use a lot of my own capital to keep carrying costs down. As I use these funds to rehab the property and then refinance, they will not allow me to take equity out.  Is there a way to take equity out of an investment property other than on the commercial side of the house, or do I just need to seek a commercial home equity line of credit.  My income, credit, and cash flow will all support a loan, but bank regulations even at the smaller, business friendly banks have stipulations.

We have all had this issue from time to time.  Even though this hurts the pride, it is 100% the best way to expedite getting someone out.  Make them a one time offer to pay them if they leave by a predetermined date.  Usually I give them 1 to 2 weeks and stick strictly to that date.  I then offer them the least amount of money I possibly can but enough where there is an incentive for them to leave.  Basically, I will tell them this, "My attorney is going to be sending you a letter stating that you have to be out by such and such a date.  If you vacate the property, return the keys, and deliver the property undamaged, free of debris, and in a broom clean condition, I will pay you $500.  If any one of these terms are not met, you get no money".  I am very clear that they are going one way or another.  There are idiots if they don't leave with cash in their pockets.  Again, stings but works and costs less in the long run.

Recently, I have been purchasing a number of multi family residential properties using personal funding, rehabbing, renting, and refinancing conventionally. In order to do this and to obtain the best rate, I have the properties in my personal name until the loan closes, then I deed the property to my LLC. Is there a more streamlined manner to do this?

Additionally, I have a relationship with a local small bank, but they are no longer a portfolio lender, so there are certain stipulations and hoops that I need to jump through that I previously did not prior to the bank going public.  Is anyone aware of a good manner to seek out an asset based, portfolio lender in the New England area that I may be able to more easily do business with?